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Tawana Resources Nl - Interim Financial Report For The Half-year Ended 30 June 2016

Release Date: 12/09/2016 10:27:00      Code(s): TAW     
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
JSE ISIN: AU0000TAWDA9
Share code on the Australian Securities Exchange Limited: TAW
ASX ISIN: AU000000TAW7
(?the Company? or ?Tawana?)

INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2016

This information should be read in conjunction with the 31 December 2015 Annual Report

PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO
TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT.




                          TAWANA RESOURCES NL

                                    ABN 69 085 166 721



                       INTERIM FINANCIAL REPORT

                          FOR THE HALF-YEAR ENDED

                                         30 JUNE 2016




                      This information should be read in conjunction with the
                                31 December 2015 Annual Report
Contents



Corporate Directory                                   3

Directors? Report                                     4

Auditor?s Independence Declaration                   11

General Information                                  12

Statement of Comprehensive Income                    13

Statement of Financial Position                      14

Statement of Changes in Equity                       15

Statement of Cash Flows                              17

Notes to the Financial Statements                    18

Directors? Declaration                               23

Independent Auditor?s Review Report to the Members   24
Corporate Directory


Directors                                  Solicitors to the Company

Mr Michael Bohm Non-Executive Chairman     Steinepreis Paganin
Mr Rob Benussi    Non-Executive Director   Level 4, The Read Buildings
Mr Michael Naylor Executive Director       16 Milligan Street
                                           Perth WA 6000
Joint Company Secretary
                                           Share Registry
Mr Michael Naylor and Ms Melanie Li
                                           Computershare Investor Services Pty Ltd
Principal Place of Business                GPO Box 2975
and Registered Office                      Melbourne VIC 3001

288 Churchill Avenue                       Tel:      +61 3 9415 5000
Subiaco WA 6008                            Fax:      +61 3 9473 2500

Contact Details                            Auditor

Website: www.tawana.com.au                 Ernst & Young
Tel:     +61 8 9489 2600                   The Ernst & Young Building
                                           11 Mounts Bay Road
                                           Perth WA 6000

                                           Stock Exchange

                                           Australian Securities Exchange
                                           ASX Code: TAW

                                           JSE Limited (South Africa)
                                           JSE Code: TAW
Directors? Report


The Directors present their report on Tawana Resources NL (?the Company?) and its controlled
entities (?Tawana? or ?the consolidated entity?) for the half-year ended 30 June 2016.

Directors

The names of the Directors in office at any time during or since the end of the half-year are as follows:

Mr Michael Bohm ? Non-Executive Chairman
Mr Michael Naylor ? Executive Director
Mr Robert Benussi ? Non-Executive Director

All Directors have been in office for this entire period unless otherwise stated.

Operating results

The loss of the consolidated entity for the half-year ended 30 June 2016 after providing for income tax
amounted to $561,730 (to 30 June 2015: $875,536).

No dividends were declared or paid during the half-year ended 30 June 2016.

Review of operations

Mt Belches Lithium Projects
In August 2016, Tawana acquired the Mount Belches Pty Ltd (?Mt Belches?), which has one tenement
application and rights (via an option agreement) to acquire 100% of three exploration licences and
one exploration licence application, all of which are highly prospective for lithium and located in the
Goldfields region of Western Australia.
The Cowan Lithium Project (?Project?) area is located 50km south east of Kambalda in the Eastern
Goldfields of Western Australia. It is located approximately 75km south east of the Mt Marion Lithium
project.
The Project area comprises Archaean quartz-biotite metasediments and amphibolites of the Eastern
Goldfields Terrane of the Yilgarn Craton. These metasediments trend north-south and have been
intruded by large numbers of pegmatites.
Two main belts of rare element Lithium-Caesium-Tantalum type (?LCT?) pegmatites are known in the
Project area. LCT type pegmatites are derived from highly siliceous, peraluminous (S-Type, ?fertile?
granites) as highly fractionated granitic melts. These fractionated melts contain the rare elements (Be,
Rb, Cs, Sn, Nb, Ta etc) and a high volatile content (H2O, F, B, P and Li). Petr ?erny's pegmatite
classification (?erny 1991) is the accepted standard. Under this pegmatite classification scheme the
Project area is prospective for:
i)      LCT Albite-spodumene: These are typically unzoned, homogeneous pegmatites with subhedral
        spodumene in a quartz-albite matrix. The Mt Marion pegmatites (located 75km to the northwest)
        are examples of this subclass.
ii)     LCT Albite: Zoned albite pegmatites have a fine grained albite and quartz border zone with
        albite, often of the cleavelandite variety, as the central pegmatite zone. Small quartz lenses and
        scattered pods of coarsely crystallized quartz, microcline with accessory minerals of beryl and
        phosphates with mica are found irregularly within the albite.
iii)    LCT Complex: There are considered to be four subclasses depending upon which Li-bearing
        mineral is dominant in the pegmatite.
             a) Spodumene: spodumene-dominant lithium-bearing pegmatites that are zoned and
                mineralogically complex (Greenbushes, Mt Cattlin).
             b) Petalite: Zoned pegmatites dominated by petalite and/or its alteration products
                (Londonderry 105km WNW).
             c) Lepidolite: Pegmatites simple or zoned with are rich in lepidolite (Mt Deans 105km SW).
             d) Amblygonite: Amblygonite-rich pegmatites (Ubini).
Directors? Report


The two large LCT pegmatite belts in Project area are:
1)    Mt Belches ? Bald Hill (?MBBH Belt?)
      This pegmatite belt striking north/north west extends for at least 15km, however likely extends
      for at least 25km under transported cover. A large number of albite rich and LCT type Albite-
      Spodumene pegmatites occur over a width of about 4km.                 Previous exploration and
      exploitation has been focused on tantalum and tin. About 10km strike of the belt is located on
      the Mount Belches tenements.
2)    Claypan Dam- Madoonia (?CDM Belt?)
      This less explored north west oriented LCT pegmatite belt has a strike of at least 22km and
      width of at least 7km. The belt is known to contain LCT Albite pegmatites with tantalite and tin
      and potentially hosts LCT Albite-Spodumene pegmatites. A significant portion of the belt is
      covered by the Mount Belches tenements.

The Yallari Project is located 25km southeast of Coolgardie and about 10km west of Mt Marion. The
project areas cover portions of the greenstone sequence that hosts the Mt Marion and Londonderry
pegmatite fields. Numerous pegmatites have been mapped by nickel and base metal explorers however
there are no records on the rare element content of the pegmatites. These pegmatites based on their
mineralogy are probably derived from a peraluminous and possible ?fertile? granite. The geological setting
of the pegmatites and the proximity to the Mt Marion and Londonderry lithium bearing pegmatite fields is
encouraging.


Mofe Creek Iron Ore Project
Tawana?s 100% owned Mofe Creek Project (?the Project?) is in the heart of Liberia?s historic iron ore
district, located 20km from the coast and 80km from the country?s capital city and major port,
Monrovia (refer figure 2).

Mineral Development Agreement

The Company is awaiting a formal response from Liberia?s IMCC with regard to the first pass
submission of Tawana Liberia Inc.?s Mineral Development Agreement (?MDA?). A response is
anticipated by the end of 2016.
The MDA is an agreement outlining the technical, commercial and social/environmental
commitments to be undertaken to build, operate and sustain a project within Liberia, and is a
legislative document passed as a bill in parliament for a term of 25 years.

Infrastructure and Logistics
On 18 May 2015, Tawana and WISCO CAD (Hong Kong) Mining Company Limited (WISCO) signed a
non-binding memorandum of understanding (MoU)1 to negotiate in good faith, a potential definitive
Cooperation Agreement between the parties in relation to access and use of WISCO CAD?s port
facilities in the port of Freeport, Monrovia. Negotiations are ongoing.

Exploration
In February 2016, Tawana announced that diamond drilling had confirmed the presence of high grade
DSO style hematite mineralisation, with iron grades up to 66% Fe, located a short trucking distance to
the operating port of Freeport, Monrovia.

Six diamond drill holes (376.5m) were drilled over the north east section of the Goehn Prospect where
there was a concentration of high grade Magnetite/Hematite mineralisation mapped and samples
reported an average grade of 66% Fe (Refer to ASX Announcement of 8 July 2015)2.

The six holes were drilled across two lines 200m apart on nominal 50m drill spacing. The program
was designed to test at depth the identified DSO and high grade friable iron formation from previous
field work. The program was successful as all the holes intersected either DSO or high grade friable
iron formation or a combination of both, see Figure 5.
Directors? Report


The core was processed on site with assays taken every meter by a hand held XRF machine with
appropriate QAQC procedures followed. Table 2 lists all significant assay results from the six drilled
holes.

Table 1. Drill program for Goehn prospect3

  Hole ID       Hole Type            East        North            RL           Dip         Azimuth    Hole depth
                                                                                                         (m)
 GSEDD01         NQ core          269,303        755,744          107          -50           330          40
 GSEDD02         NQ core          269,337        755,694          96           -50           330         66
 GSEDD03         NQ core          269,431        755,856          93           -50           305         53.4
GSEDD03A         NQ core          269,431        755,847          92           -60           305         77.4
 GSEDD04         NQ core          269,397        755,879          110          -50           305         68.4
 GSEDD05         NQ core          269,361        755,910          112          -50           125         71.3
Co-ordinate system: UTM WGS84 Zone 29N

Table 2. Significant assay results3

Hole ID         Depth       Depth       Intersection       Fe %         Si %     Al %          P%          S%
               From (m)     To (m)           (m)
GSEDD001          1           12              11           60.2         1.8          6.3       0.03        0.04
                  20         36             16             45.0         4.4          5.7       0.03        BDL
GSEDD002          3          14             11             50.9         2.1          4.7       0.01        BDL
                  27         45             18             44.9         5.2          5.2       0.02        BDL
                  51         66             15             44.5         3.2          1.6       0.02        0.08
GSEDD003          1          29             28             51.5         1.1          1.4       BDL         BDL
including         1           5              4             63.3         0.6          0.8       BDL         BDL
GSEDD003A       surface      11             11             52.9         1.7          2.2       BDL         BDL
including         1           5              4             60.9         1.4          1.7       BDL         BDL
GSEDD004          2          20             18             51.2         1.3          1.9       BDL         BDL
including         4           9              5             59.0         0.8          1.3       BDL         BDL
                  28         42             14             61.1         0.9          1.3       BDL         BDL
                  49         62             13             51.7         1.0          0.7       BDL         BDL
GSEDD005        surface      22             22             54.5         1.6          2.0       BDL         BDL
including         3          15             12             62.1         1.4          1.8       BDL         BDL
                  26         35              9             52.1         1.9          3.1       BDL         BDL
including         31         34              3             62.1         1.8          3.2       BDL         BDL
                  41         48              7             55.0         2.0          2.3       BDL         BDL
including         45         48              3             63.6         1.8          2.1       BDL         BDL
                  50         66             16             49.8         1.2          1.4       BDL         BDL
Note: All results reported using a handheld XRF machine and are considered semi-quantative in
nature. BDL = Below detection limit.

Tawana is considering a range of potential options to unlock value for shareholders, including joint
venture or outright sale options.

Corporate

Share Consolidation
On 8 April 2016, the Company completed a one-for-twenty consolidation of its issued capital. The
consolidation resulted in the shares on issue being reduced from approximately 1,475.3 million to
73.8 million (before any subsequent capital raising).

All outstanding options were also consolidated on the same ratio which resulted in a total of 1.12
million options on issue.
Directors? Report


Rights Issue
In June 2016, the Company completed a fully subscribed 1 for 1 pro rata non-renounceable rights
issue at an issue price of $0.015 raising $1,106,441 before costs.

Sale of Subsidiary
In January 2016, BlueRock Diamonds purchased the Company?s total shareholding and loan account
in Diamond Resources (a 100% owned subsidiary of Tawana Resources NL) for ZAR 700,000
(A$70,300).

Events occurring after the reporting period

Placement
Subsequent to 30 June 2016, the Company raised $1,750,000 by issue of shares at a price of $0.025
per share as follows:

-   In July, Tranche 1 of the capital raising was completed and 19,620,000 ordinary shares at an issue
    price $0.025 per share were issued to sophisticated investors.

-   Tranche 2 of 50,400,000 shares at an issue price of $0.025 per share was approved by
    shareholders at the General Meeting held on 23 August 2016. The Directors participated in the
    placement and were issued 2,000,000 shares each at $0.025 per shares.

Appointment of Chief Executive Officer
Mark Calderwood was appointed Chief Executive Officer (?CEO?) of the Company effective 11 July
2016. He has extensive experience in mineral exploration and production management, he is an
authority on pegmatites and was a co-author of the ?Pegmatites of Western Australia?. Mr Calderwood
was CEO of Perseus Mining Limited for 9 years and is currently non-executive director of three junior
gold explorers. Mr Calderwood has the requisite 5 years? experience for reporting on the results of
rare metal pegmatite exploration.

Completion of Acquisition of Mt Belches Pty Ltd
On 23 August 2016, the shareholders of Tawana approved the purchase of Mt Belches Pty Ltd. The
Company subsequently issued 40,000,000 shares to the owners of My Belches Pty Ltd, which has
one tenement application and rights (via an option agreement) to acquire 100% of three exploration
licences and one exploration licence application, all of which are highly prospective for lithium and
located in the Goldfields region of Western Australia. The acquisition of Mt Belches Pty Ltd has been
treated as an acquisition of an exploration asset.

Issue of Options
In July 2016, the Company issued 3,000,000 options to the Chief Executive Officer at an exercise
price of $0.06 per option and an expiry date of 30 June 2019.

At the General Meeting held on 23 August 2016, shareholders approved the issue of 1,000,000
options to each of the Directors at an exercise price of $0.06 per option and an expiry date of 30 June
2019.

Auditor?s independence declaration

The lead auditor?s independence declaration for the half-year ended 30 June 2016 has been received
and is attached to this Directors? Report.

Signed in accordance with a resolution of the Board of Directors.
Mr Michael Naylor
Executive Director

Dated this 12th day of September 2016

Competent Persons Statement
Mt Belches Lithium Projects
Directors? Report


The information in this announcement that relates to Mt Belches Exploration Results is based on and fairly
represents information and supporting documentation compiled by Mr Mark Calderwood. Mr Calderwood is a
member of The Australasian Institute of Mining and Metallurgy. Mr Calderwood has sufficient experience
relevant to the style of mineralisation under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 edition of the ?Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves?. Mr Calderwood consents to the inclusion in this
report of the matters based on their information in the form and context in which it appears.

Mofe Creek Iron Ore Project
The information in this report that relates to Mofe Creek Iron ore Exploration Results and Resources is based
on information compiled by Shane Tomlinson, who is a member of the Australian Institute of Geoscientists.
Shane Tomlinson has sufficient experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in
the 2012 Edition of the ?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves?. Shane Tomlinson consents to the inclusion of the matters in this report based on his information in
the form and context in which it appears.

Notes
1: Disclaimer



     (i) The MOU represents a non-binding intention of the parties to negotiate a formal cooperation
          agreement in good faith. The parties are yet to agree on any definitive operational,
          commercial and/or legal terms (including tonnage capacity or delivery schedules) for the
          cooperation agreement;
     (ii) there is no certainty or assurance that parties will reach a final agreement on the terms of the
          cooperation agreement.

Refer to ASX announcement on 18 May 2015 for further information.

2: For more information, refer ASX announcement. Tawana Resources NL is not aware of any new
information or data that materially effects the information included in the said announcement.

3:For more information, refer ASX announcement on 18 February 2016. Tawana Resources NL is not
aware of any new information or data that materially effects the information included in the said
announcement.
Auditor?s Independence Declaration


Auditor?s Independence Declaration to the Directors of Tawana Resources NL

As lead auditor for the review of Tawana Resources NL for the half-year ended 30 June 2016, I declare to the
best of my knowledge and belief, there have been:

    a)   no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
         the review; and
    b)    no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Tawana Resources NL and the entities it controlled during the financial period.
Ernst & Young

R J Curtin
Partner

12 September 2016
General Information


The half year consolidated financial statements cover Tawana Resources NL as a consolidated entity
consisting of Tawana Resources NL and its subsidiaries. The half year consolidated financial
statements are presented in Australian dollars, which is Tawana Resources NL?s functional and
presentation currency.

Tawana Resources NL is a listed public company limited by shares, incorporated and domiciled in
Australia. Its registered office and principle place of business are:

288 Churchill Avenue
SUBIACO WA 6008
Telephone: +61 8 9489 2600
website: www.tawana.com.au

A description of the nature of the consolidated entity?s operations and its principle activities are
included in the directors? report which is not part of the half year consolidated financial statements.

The half year consolidated financial statements were authorised for issue, in accordance with a
resolution of directors on 12 September 2016.
Consolidated Statement of Comprehensive Income
For the half-year ended 30 June 2016




                                           Note   30 June 2016            30 June 2015
                                                       $                       $
Continuing operations
Income                                      3             6,274                 18,953

Corporate costs                             3         (313,356)                (461,138)
Depreciation                                           (13,243)                 (34,166)
Employee benefits expense                   3         (107,479)                (315,645)
Share-based payments                                         -                 (118,421)
Exploration expenses written off                      (132,974)                       -
Foreign exchange gain                                      638                   67,081
Other expenses                                          (1,590)                       -
Loss before income tax expense                        (561,730)                (843,336)
Income tax expense                                           -                        -
Net loss for the period from
continuing operations                                 (561,730)                (843,336)
Loss from discontinued operations
after tax                                                        -              (32,200)
Net loss for the period attributable
to Tawana Resources NL                                (561,730)                (875,536)

Other comprehensive (loss)/income
Items that may be reclassified to profit
or loss
(Loss)/gain on translation of foreign
operations                                               (1,821)               208,868
Total comprehensive loss for the
period attributable to Tawana
Resources NL                                          (563,551)                (666,668)


Basic and diluted loss per share from
continuing and discontinued operations
(cents)                                    11           (0.67)                   (1.40)

Basic and diluted loss per share from
continuing operations (cents)              11           (0.67)                   (1.40)

Basic and diluted loss per share from
discontinued operations (cents)            11             N/A                    (0.04)




The above Consolidated Statement of Comprehensive Income should be read in conjunction with the
                                     accompanying notes.
Consolidated Statement of Financial Position
As at 30 June 2016




                                       Note           30 June             31 December
                                                       2016                   2015
                                                         $                      $

Current assets
Cash and cash equivalents                4             1,213,012                 808,342
Receivables                                              150,701                  82,549
Total current assets                                   1,363,713                 890,891

Non-current assets
Plant and equipment                      5                45,918                   60,416
Total non-current assets                                  45,918                   60,416

Total assets                                           1,409,631                 951,307

Current liabilities
Trade and other payables                                 303,038                 339,088
Provisions                                                     -                   4,161
Total current liabilities                                303,038                 343,249

Non-current liabilities
Provisions                                                15,919                   15,441
Total non-current liabilities                             15,919                   15,441

Total liabilities                                        318,957                 358,690

Net assets                                             1,090,674                 592,617

Equity
Contributed equity                      6(a)          55,451,796               54,419,776
Reserves                                               2,165,943                2,166,972
Accumulated losses                                   (56,527,065)            (55,994,131)
Total equity                                           1,090,674                  592,617




   The above Consolidated Statement of Financial Position should be read in conjunction with the
                                     accompanying notes.
Consolidated Statement of Changes in Equity
For the half-year ended 30 June 2016


                                                 Reserves
                     Issued        Options        Foreign     Other         Accumulated      Total
                     capital       Reserve       Currency    Reserves          losses
                                                 Reserve
                        $             $              $          $                $             $
Balance at 1
January 2016        54,419,776      411,645      1,732,443      22,884       (55,994,131)    592,617

Comprehensive
income
Loss for the
period                         -             -           -              -      (561,730)    (561,730)
Other
comprehensive
loss for the
period                         -             -     (1,821)              -               -     (1,821)
Total
comprehensive
loss for the
period                         -             -     (1,821)              -      (561,730)    (563,551)
Transactions
with
owners in their
capacity as
owners
Shares issued,
net of costs         1,032,020               -           -              -               -   1,032,020
Options
exercised or
lapsed                         -    (28,796)             -              -         28,796             -
Options issued
and vested                     -     29,588              -              -               -     29,588
Total
transactions with
owners in their
capacity as
owners               1,032,020            792            -              -         28,796    1,061,608

Balance at 30
June 2016           55,451,796      412,437      1,730,622      22,884       (56,527,065)   1,090,674
Consolidated Statement of Changes in Equity
For the half-year ended 30 June 2016


                                                  Reserves
                      Issued        Options         Foreign   Other     Accumulate      Total
                      capital       Reserve        Currency   Reserv     d losses
                                                   Reserve      es
                         $             $               $         $           $            $
Balance at 1
January 2015         54,419,776     1,929,719     1,062,674    22,884   (47,936,896)    9,498,157
Restatement of
comparatives                    -             -           -         -     (218,380)     (218,380)

                     54,419,776     1,929,719     1,062,674    22,884   (48,155,276)    9,279,777
Comprehensive
income
Loss for the
period                          -             -           -         -     (875,536)     (875,536)
Other
comprehensive
income for the
period                          -             -     208,868         -              -      208,868
Total
comprehensive
income/(loss) for
the period                      -             -     208,868         -     (875,536)     (666,668)
Transactions
with
owners in their
capacity as
owners
Shares issued,
net of costs                    -             -           -         -              -              -
Options
exercised or
lapsed                          -   (502,214)             -   502,214              -              -
Options issued
and vested                      -    118,421              -         -              -      118,421
Total transactions
with
owners in their
capacity as
owners                          -   (383,793)             -   502,214              -      118,421

Balance at 30
June 2015            54,419,776     1,545,926     1,271,542   525,098   (49,030,812)    8,731,530




   The above Consolidated Statement of Changes in Equity should be read in conjunction with the
                                     accompanying notes.
Consolidated Statement of Cash Flows
For the half-year ended 30 June 2016




                                                      Note   30 June 2016        30 June 2015
                                                                  $                   $

Cash flows from operating activities
Payments to suppliers and employees                                (586,227)            (823,579)
Interest received                                                     4,238               18,953
Other income                                                          1,400                    -
Net cash flows used in operating activities                        (580,589)            (804,626)

Cash flows from investing activities
Proceeds from disposal of plant and equipment                         9,540                    -
Payments for exploration                                           (128,744)            (423,557)
Cash disposed as a part of discontinued operations                        -              (32,650)
Proceeds received in advance for sale of subsidiary                  70,813                    -
Net cash flows used in investing activities                         (48,391)            (456,207)

Cash flows from financing activities
Proceeds from issue of shares                                     1,077,395                     -
Capital raising costs                                               (44,415)                    -
Net cash flows from financing activities                          1,032,980                     -

Net (decrease)/increase in cash and cash
equivalents                                                         404,000           (1,260,833)
Cash and cash equivalents at beginning of period                    808,342            2,802,978
Effects of exchange rates on cash holdings in
foreign currencies                                                      670               70,431
Cash and cash equivalents at end of period             4          1,213,012            1,612,576




      The above Consolidated Statement of Cash Flows should be read in conjunction with the
                                    accompanying notes.
Notes to the Financial Statements
For the half-year ended 30 June 2016


1.   Basis of preparation
     These half-year consolidated financial statements are general purpose condensed financial
     statements prepared in accordance with the requirements of the Corporations Act 2001 and
     Australian Accounting Standard AASB 134: Interim Financial Reporting.

     It is recommended that these financial statements be read in conjunction with the annual
     financial report for the year ended 31 December 2015 and any public announcements made by
     Tawana Resources NL and its controlled entities (?the Group?) during the half-year in
     accordance with continuous disclosure requirements arising under the Corporations Act 2001.

     The half-year financial statements do not include full disclosures of the type normally included in
     annual financial statements.

     The accounting policies applied by the Group in the consolidated interim financial statements
     are the same as those applied by the Group in its consolidated financial report for the year
     ended 31 December 2015.

     All new and amended Accounting Standards and Interpretations effective from 1 January 2016
     have been adopted. The adoption of these new standards and interpretations had no effect on
     the financial position of performance of the Group.

     Reporting Basis and Conventions
     The half-year financial statements have been prepared on an accruals basis and are based on
     historical costs.

2.   Dividends
     No dividend has been declared or paid during the half-year or the previous corresponding
     period.

3.   Revenue and Expenses
                                                                        30 June                30 June
                                                                           2016                   2015
                                                                              $                      $
     Revenue
     Interest Received                                                   4,774                 18,953
     Other Income                                                        1,500                      -
                                                                         6,274                 18,953

     Expenses
     Corporate expenses include:
     Auditors? remuneration                                             53,198                 49,194
     Compliance and regulatory fees                                     62,988                 48,395
     Consultancy and legal fees                                         35,352                141,818
     Travel expenses                                                     6,941                 50,236
     Other expenses                                                    154,877                171,495
                                                                       313,356                461,138
     Employee benefits expenses include:
     Salaries and wages                                                 45,763                232,374
     Superannuation                                                      3,014                 27,817
     Directors? fees                                                    62,208                 47,395
     Other employee expenses (including
     movements in provision for annual leave
     and long service leave)                                            (3,506)                 8,059
                                                                       107,479                315,645
Notes to the Financial Statements
For the half-year ended 30 June 2016


4.    Cash and cash equivalents
      For the purpose of the consolidated statement of cash flows, cash and cash equivalents are
      comprised of the following:

                                                                   30 June        31 December
                                                                      2016                2015
                                                                          $                   $
      Cash at bank and in hand                                  1,213,012             788,342
      Short term deposits                                               -              20,000
      Total cash and cash equivalents                           1,213,012             808,342

5.    Property, Plant and Equipment
                                                                   30 June        31 December
                                                                      2016               2015
                                                                         $                  $
      Gross carrying amount
      Balance at beginning of the year                            292,285            1,210,415
      Disposals                                                  (119,562)            (926,237)
      Foreign currency translation                                    598                8,107
      Balance at end of the year                                  173,321              292,285

      Accumulated depreciation
      Balance at beginning of the year                            231,869            1,105,682
      Depreciation                                                 13,243               52,327
      Depreciation reversal on disposal                          (119,562)            (926,237)
      Foreign currency translation                                  1,853                   97
      Balance at end of the year                                  127,403              231,869
      Net book value                                               45,918               60,416

6.    Contributed equity

(a)   Movements in share capital
                                                                   30 June        31 December
                                                                      2016                2015
                                                                          $                   $
      Ordinary shares, fully paid                              55,451,796          54,419,776

      Movement in ordinary shares on issue
                                                              Number                  $
      Balance at 1 January 2016                             1,475,250,387           54,419,776
      Less share consolidation 20:1                        (1,401,487,636)                   -
      Shares issued                                            73,762,751            1,106,441
      Share issue costs                                                 -              (74,421)
      Balance at 30 June 2016                                 147,525,502           55,451,796
Notes to the Financial Statements
For the half-year ended 30 June 2016


(b)   Share options

                            Exer-    Expiry date     Balance at    Options         Issued           Expired or        Balance at
                            cise                    beginning of   consoli-       during the       forfeited or        end of
                            price                     period        dation         period            lasped            period
                                                                                                    during the
                                                                                                     period
                                                      Number       Number          Number            Number            Number


      Unlisted options      $0.30    12 Dec 16         1,500,000    (1,425,000)                -                  -        75,000

      Unlisted options      $0.36    12 Dec 16        10,000,000    (9,500,000)                -                  -      500,000

      Unlisted options      $0.78     20 Jan 17        1,000,000     (950,000)                 -       (50,000)                    -

      Unlisted options     $0.178    26 May 18        11,000,000   (10,450,000)                -                  -      550,000

      Unlisted options     $0.008     7 Jul 18         2,000,000    (1,900,000)                -      (100,000)                    -

      Unlisted options     $0.035     14 Jun 18                -              -     2,500,000                     -     2,500,000

                                                      25,500,000   (24,225,000)     2,500,000         (150,000)         3,625,000


      The valuation inputs used in determining the fair value of the options granted (using the Black-
      Scholes model) during the half-year were as follows:

      Quantity                                   2,500,000
      Grant date                                 16 Jun 16
      Expiry date                                14 Jun 18
      Grant date share price                        $0.026
      Exercise price                                $0.035
      Expected volatility                            100%
      Option life (years)                                2
      Expected dividend yield                          0%
      Risk free rate at grant date                  1.55%

7.    Segment information

      Identification of reportable segments
      The Group has identified its operating segments based on the internal reports that are reviewed
      and used by the Board of Directors (the chief operating decision makers) in assessing
      performance and in determining the allocation of resources.
      The Group only has one segment being, mineral exploration in Liberia. Accordingly, all
      significant operating disclosures are based upon analysis of the Group as one segment. The
      financial results from this segment are equivalent to the financial statements of the Group as a
      whole.

8.    Contingent assets and liabilities and commitments
      There has been no significant change to contingent liabilities and commitments since 31
      December 2015.

9.    Related party transactions
      There have been no other significant transactions with related parties that were entered into
      during the period.

10.   Financial instruments
      The fair value of financial assets and financial liabilities of the Group approximated their
      carrying amount.
Notes to the Financial Statements
For the half-year ended 30 June 2016


11.     Loss per share

                                                                              30 June            30 June
                                                                                 2016               2015

        Loss from continuing and discontinuing operations used in
        the calculation of basic EPS                                        (561,730)          (875,536)
        Loss from continuing operations used in the calculation of
        basic EPS                                                           (561,730)          (843,336)
        Loss from discontinued operations used in the calculation
        of basic EPS                                                                 -           (32,200)

        Weighted average number of ordinary shares used in the
        calculation of basic and diluted loss per share (share
        consolidation 20:1 in 2016)                                       83,249,707          81,859,315

        The loss per share calculation as disclosed on the Consolidated Statement of Comprehensive
        Income does not include instruments that could potentially dilute basic earnings per share in the
        future as these instruments were anti-dilutive in the periods presented.

        The comparative weighted average number of share on issue has been adjusted for the share
        consolidation and rights issue completed during the 6 months to 30 June 2016.

        Headline loss per share disclosed as required by the JSE Limited is detailed below:

                                                                              30 June            30 June
                                                                                 2016               2015

        Headline loss                                                       (561,730)          (875,536)
        Headline loss per share (cents)                                          0.67               1.40


12.     Subsequent events

Placement
Subsequent to 30 June 2016, the Company raised $1,750,000 by issue of shares at a price of $0.025
per share as follows:

-     In July, Tranche 1 of the capital raising was completed and 19,620,000 ordinary shares at an issue
      price $0.025 per share were issued to sophisticated investors.

-     Tranche 2 of 50,400,000 shares at an issue price of $0.025 per share was approved by
      shareholders at the General Meeting held on 23 August 2016. The Directors participated in the
      placement and were issued 2,000,000 shares each at $0.025 per shares.

Appointment of Chief Executive Officer
Mark Calderwood was appointed Chief Executive Officer (?CEO?) of the Company effective 11 July
2016. He has extensive experience in mineral exploration and production management, he is an
authority on pegmatites and was a co-author of the ?Pegmatites of Western Australia?. Mr Calderwood
was CEO of Perseus Mining Limited for 9 years and is currently non-executive director of three junior
gold explorers. Mr Calderwood has the requisite 5 years? experience for reporting on the results of
rare metal pegmatite exploration.

Completion of Acquisition of Mt Belches Pty Ltd
On 23 August 2016, the shareholders of Tawana approved the purchase of Mt Belches Pty Ltd. The
Company subsequently issued 40,000,000 shares to the owners of My Belches Pty Ltd, which has
one tenement application and rights (via an option agreement) to acquire 100% of three exploration
licences and one exploration licence application, all of which are highly prospective for lithium and
Notes to the Financial Statements
For the half-year ended 30 June 2016


located in the Goldfields region of Western Australia. The acquisition of Mt Belches Pty Ltd has been
treated as an acquisition of an exploration asset.

Issue of Options
In July 2016, the Company issued 3,000,000 options to the Chief Executive Officer at an exercise
price of $0.06 per option and an expiry date of 30 June 2019.

At the General Meeting held on 23 August 2016, shareholders approved the issue of 1,000,000
options to each of the Directors at an exercise price of $0.06 per option and an expiry date of 30 June
2019.


13.   Restatement of comparative information

The opening equity balance at 1 January 2015 in these financial statements has been restated to
adjust for the reclassification of the R&D tax rebate of $218,380 from the profit or loss to capitalised
exploration expenditure in the statement of financial position during the financial year ended 31
December 2014.

This restatement did not impact financial position of the Group as at 30 June 2015 and for the half-
year then ended.
Directors? Declaration


In accordance with a resolution of the Board of Directors, I state that:

In the opinion of the Directors:

1.    The interim financial statements and notes are in accordance with the Corporations Act 2001
      and:

      (a)    Comply with Accounting Standard AASB 134 Interim Financial Reporting and the
             Corporations Regulations 2001; and

      (b)    Give a true and fair view of the financial position of the consolidated entity as at 30 June
             2016 and of its performance for the half-year ended on that date.

2.    There are reasonable grounds to believe that the Company will be able to pay its debts as and
      when they become due and payable.

On behalf of the Board




Mr Michael Naylor
Executive Director

Dated this 12th day of September 2016
Independent Auditor?s Report


To the members of Tawana Resource NL

Report on the Half-year Financial Report

We have reviewed the accompanying half-year financial report of Tawana Resources NL, which comprises the
consolidated statement of financial position as at 30 June 2016, the consolidated statement of comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year
ended on that date, notes comprising a summary of significant accounting policies and other explanatory
information, and the directors? declaration of the consolidated entity comprising the company and the entities it
controlled at the half-year end or from time to time during the half-year.

Directors? Responsibility for the Half-year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal controls as the directors determine are necessary to enable the preparation of the half-year financial
report that is free from material misstatement, whether due to fraud or error .

Auditor?s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We
conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a
Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of
the procedures described, we have become aware of any matter that makes us believe that the financial report is
not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated
entity?s financial position as at 30 June 2016 and its performance for the half-year ended on that date; and
complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations
2001. As the auditor of Tawana Resources NL and the entities it controlled during the half-year, ASRE 2410
requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does
not enable us to obtain assurance that we would become aware of all significant matters that might be identified
in an audit. Accordingly, we do not express an audit opinion.

Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
We have given to the directors of the company a written Auditor?s Independence Declaration, a copy of which is
included in the Directors? Report.

Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that
the half-year financial report of Tawana Resources NL is not in accordance with the Corporations Act 2001,
including:

    a)   giving a true and fair view of the consolidated entity?s financial position as at 30 June 2016 and of its
         performance for the half-year ended on that date; and

    b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
       Regulations 2001.

Ernst & Young

R J Curtin
Partner

Perth
12 September 2016

Date: 12/09/2016 10:27:00 Supplied by www.sharenet.co.za                     
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